In 1991, India embraced economic liberalization & opened up its markets to foreign investors.  Many MNCs  looked at Indian markets as a great opportunity & entered  these markets with the same products & services  which were super hit in their respective markets ( or with minor changes). Unfortunately, many companies including global giants like Coke, Sony, Kellogg’s,  Nike failed miserably (in their first attempt at least).

Why did they fail?  They failed because  they didn’t  understand the  Indian market.

India is one of the most complex countries in the world. With its financial & cultural diversity the complexity multi-folds.  Here are some of the mindboggling stats:

·         It is 2nd largest county in term of population
·         4th largest GDP in the world
·         500+million people under the age of 21
·         Economic disparity – 109 billionaire & 300 million people living under  a $1 a day.
·         28 states & 7 union territories, 23 languages,  62 socio-cultural  regions
·         400+million middle class with growing purchasing power.

Heterogeneity of India is so complex that it is some time difficult to find a common thread in likes & dislikes of Indian people.  With such diversity in the backdrop, one can understand why MNCs failed launching their existing product or services.  They have to custom tailor the products or even better have to completely innovate the products for the Indian market to be successful in this market.

In order to succeed in the Indian market, it is always advisable to  work with some India based marketing consultant/company who has understanding  of both Indian as well as western cultures/markets.  Having travelled to more than 20 countries & lived in US for more than 10 years, I appreciate & emphasize the need for thoroughly understanding both the cultures in order to succeed in the Indian market.

If you are planning to do business in India, or have already taken the plunge and are grappling with some the above mentioned challenges; need some Consultation or Advisory services please contact us or Click Here. 

 Some of the services offered by Vaidya Consulting:

·         Help you develop your India entry strategy
·         Can conduct all kinds of research & surveys, prepare reports
·         Help you with partner selection
·         Select the suitable city & state to do business & the rationale
·         Assist with the regulatory approvals
·         Selection/setting up the office
·         Running the office/ facility management
·         Help you with all the statutory requirements
·         Recruiting  from senior management  to  lower staff

Click here to read World Bank Article  on Doing Business in India


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